Construction of the innovation base of German technology and science firm Merck Group started on Wednesday and is expected to be completed by next year.

Located in Shanghai's Pudong New Area, the base is a venture undertaken with Zhangjiang Group and will be used for the incubation, acceleration and investment of innovation projects.

The facility will measure over 2,000 square meters and will cover incubation and acceleration zones, exhibition centers and workshop areas.

Sun Zhengjie, managing director of Merck Innovation Hub China and vice-president of Merck Strategy & Transformation China, said the base is aimed at bringing high-quality innovation projects in multiple areas, such as healthcare, life science and performance materials, to Shanghai over the next three years.

"It's a natural, critical move for the company that shows our trust in the vibrant innovation ecosystem in Zhangjiang," Sun said.

"The base will be backed up by resources in Zhangjiang, including governmental support and leading public lab platforms, and the experts and partners of Merck, to drive the development of start-ups," she added.

Merck has been boosting its investment in innovation in the Chinese market in recent years. During the China International Import Expo earlier this month, the company announced two major initiatives: a strategic partnership with a domestic services enterprise focusing on the import of a large range of products for life science that is critical for research, and the establishment of an electronic technology center in Shanghai with a total investment of 140 million yuan ($21.37 million).

"The innovation environment and rapid development in China has facilitated the growth of our company. We will continue to actively promote the innovation ecology and accelerate the transformation and commercialization of scientific and technological achievements, in partnership with our local partners, for the technology and innovation advancement worldwide," Sun said.